CVC Brasil Operadora e Agência de Viagens (CVCB3) Q2 2024 earnings summary

Executive summary

• Marked one year of new management, focusing on governance, culture, and strategy, leading to visible improvements since June 2023.

• Opened 60 new stores in Q2 2024, reaching a record 90 new stores in H1, with strong expansion in both capital and small cities, multiplying the addressable market by five.

• B2C confirmed bookings grew 16% year-over-year, with 10% same-store sales growth and 21% growth excluding Rio Grande do Sul impact.

• B2B bookings dropped 4.8% in Q2, but net revenue rose 25% and take rate improved, reflecting a focus on profitability.

• Argentina operations resilient despite macroeconomic headwinds, with 11 new stores, market share gains, and positive net profit in Q2.

Financial highlights

• Net revenue grew 18.6% in Q2 year-over-year, reaching BRL 149.5 million, with Brazil operations up 21%.

• Adjusted EBITDA reached BRL 70.3 million (23.9% margin), up BRL 87 million from Q2 2023, driven by product profitability and cost rationalization.

• Operating cash generation of BRL 35 million, the best in 18 quarters, with a BRL 345 million reduction in overall indebtedness year-over-year.

• Take rate improved to 9.4% in Q2 2024, with B2C at 12.9% and B2B at 6.6%.

• Net loss narrowed to BRL 22.2 million from BRL 167 million in Q2 2023; cash net income was positive at BRL 6.8 million.

Outlook and guidance

• Continued focus on store expansion, especially in smaller cities and through partnerships with major retailers.

• Expect continued B2C and B2B growth in H2, with B2B returning to positive booking growth as frequent flyer comparison laps.

• Argentina expected to recover gradually, with market share gains and positive cash generation prioritized.

• Take rate expected to remain around 9%, with further expense reductions as a percentage of net revenue.

• Management anticipates further cash generation and working capital benefits from exclusive product sales.